Insurance Premium Tax rising to 10% from October

Originally posted on CMJ Insurance brokers.

As announced in the last Budget, a 0.5% rise from 9.5% to 10% in Insurance Premium Tax (IPT) is effective from 1 October.

• all policies with a start or renewal date on or after 1 October 2016 will be liable to 10% IPT
• all policies with a start/renewal date before 1st October will be liable to 9.5% IPT
• any additional premiums or other policyholder charges (i.e. Mid Term Adjustments) arising before 1 October 2016 will be liable to IPT at 9.5%
• any additional premiums or other policyholder charges (Mid Term Adjustments) arising on or after 1 October 2016 will be liable to IPT at 9.5% provided the policy was in force prior to 1 October 2016. NB. This does not include extensions to cover.any additional premiums or other policyholder charges (Mid Term Adjustments) arising on or after 1st October 2016 where the original policy has a start or renewal date falling on or after 1 October 2016 will be liable to IPT at 10%

If you have any questions, please contact your account manager.